The chief executive of Haart Estate Agents has warned that the traditional lull in the property market over the festive season could last longer this year.

Paul Smith, responding to new house price figures from Nationwide, said that while a price crash appears unlikely and the shortage of properties available will help strengthen the market, the squeeze on buyer''s finances could chill sales.

"We are currently experiencing the traditional seasonal lull, with lower levels of activity and this is likely to be more prolonged than usual as affordability remains strained and market uncertainties linger," he explained.

However, Mr Smith was upbeat about the prospects for next year, commenting: "We are expecting the market to bounce back in the second half of 2008 when this period of adjustment has run its course."

Agents may also be poised to feel the impact of the introduction of home information packs for all homes in December.

Nationwide chief economist Fionnuala Earley suggested that the scheme could "reduce the numbers of speculative sellers which could limit the available supply and make the house search process longer".